India’s benchmark share market indices, Sensex and Nifty50, started the day’s trade almost flat on Tuesday, May 20, 2025. The Sensex (30 firms index) surged 47.73 points to open at 82,107.15 on Tuesday. Meanwhile, Nifty50 (index with top 50 firms) surged 50.75 points to open at 24,996.20 points.
Indian benchmark indices tracked the cues from the US markets, which also ended flat amid ongoing concerns over tariff wars. The market mood remained cautious globally as trade tensions and fiscal issues in the US cast a shadow on investor sentiment.
All sectoral indices on the National Stock Exchange opened in the green. The Nifty Realty index led the gains, rising by 1.43%. Nifty IT gained 0.65%, FMCG rose by 0.4%, pharma added 0.36%, PSU Bank shares climbed 0.72%, and Nifty Auto advanced by 0.24%. The Bank Nifty showed a modest rise of 0.4%, while the Nifty Next 50 index was up by 0.42%.
Global Markets
Experts noted that pressure in the US markets is evident, largely due to the lingering effects of tariff wars under President Trump’s administration. The tariff policy, which includes a minimum of 10% duty on almost all imports into the US, has raised concerns about the future of global trade. The impact of this trade policy has been felt across financial markets worldwide, including India. Adding to the pressure, the White House and the US Treasury strongly opposed Moody’s recent downgrade of the US’s “AAA” credit rating.
Despite these developments, US stock futures remained weak throughout the Asian and European trading sessions but managed to recover and close in green for the sixth consecutive day.
Notably, yields on US 30-year Treasury bonds briefly crossed the 5 per cent mark but ended the day below that level. The US dollar also weakened, which some experts believe was expected in such an economic environment.
Another major concern for the US economy highlighted by the experts is the wide fiscal deficit, which continues to grow amid the Trump administration’s tax cuts. Analysts point out that this deficit is being financed by what is often referred to as the “exorbitant privilege” of the US dollar being the preferred global reserve currency.
In Asian markets, all major indices opened with gains on Tuesday. Hong Kong’s Hang Seng surged more than 1%, Japan’s Nikkei 225 rose by 0.4%, and South Korea’s KOSPI gained 0.26%.
What Else For Share Market?
Ajay Bagga Banking and Market expert, told ANI, “EMs (Emerging Markets) will not be decoupled from a US slowdown, though a slow recalibration from US assets to Europe, Japan and EMs is definitely on. Indian investors have to hope that the US manages to stay on the course of a soft landing or a no landing, and US exceptionalism stays a core theme, despite the headwinds of tariffs and ‘living beyond their means’ coming home to roost.”
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